Medpace Holdings Inc (MEDP)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total assets	US$ in thousands	2,100,870	2,084,060	1,920,050	1,795,790	1,656,830	1,486,720	1,406,940	1,395,720	1,352,500	1,328,420	1,315,450	1,344,350	1,659,940	1,577,140	1,469,710	1,451,360	1,390,680	1,296,140	1,222,130	1,137,630
Total stockholders’ equity	US$ in thousands	825,545	881,439	763,599	671,542	558,950	470,912	391,060	347,262	386,387	349,885	283,252	605,016	952,928	898,085	851,882	858,927	805,779	791,629	738,069	717,799
Financial leverage ratio		2.54	2.36	2.51	2.67	2.96	3.16	3.60	4.02	3.50	3.80	4.64	2.22	1.74	1.76	1.73	1.69	1.73	1.64	1.66	1.58

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,100,870K ÷ $825,545K
= 2.54

The financial leverage ratio of Medpace Holdings Inc has shown some fluctuations over the past few years. The ratio started at around 1.58 in March 2020 and remained relatively stable around 1.6 to 1.7 until March 2022. However, from June 2022 onwards, there was a significant increase in the financial leverage ratio, reaching as high as 4.64 by June 30, 2022. This sudden increase may indicate a higher level of financial risk or debt utilization by the company during that period.

Subsequently, there was a gradual decline in the financial leverage ratio from June 2022 to December 2024, with the ratio stabilizing around 2.5 by the end of 2024. While the ratio has decreased from its peak in mid-2022, it remains higher compared to the earlier years, suggesting that the company may still be carrying a relatively higher level of debt compared to its equity.

Overall, the trend in Medpace Holdings Inc's financial leverage ratio indicates a period of increased leverage and potential financial risk followed by a gradual reduction in leverage levels. It would be important for stakeholders to monitor the company's leverage levels to assess its ability to manage debt effectively and sustain its financial performance in the long term.